Hedge Funds Are Crazy About AAR Corp. (AIR)

AAR Corp. (NYSE:AIR) has seen an increase in hedge fund interest of late.

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Keeping this in mind, it’s important to take a gander at the recent action regarding AAR Corp. (NYSE:AIR).

How have hedgies been trading AAR Corp. (NYSE:AIR)?

At the end of the first quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of 20% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Diamond Hill Capital, managed by Ric Dillon, holds the biggest position in AAR Corp. (NYSE:AIR). Diamond Hill Capital has a $17.5 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Millennium Management, managed by Israel Englander, which held a $6.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Ken Griffin’s Citadel Investment Group, D. E. Shaw’s D E Shaw and Joel Greenblatt’s Gotham Asset Management.

As industrywide interest jumped, specific money managers have jumped into AAR Corp. (NYSE:AIR) headfirst. Highbridge Capital Management, managed by Glenn Russell Dubin, assembled the biggest position in AAR Corp. (NYSE:AIR). Highbridge Capital Management had 2.2 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $0.7 million investment in the stock during the quarter. The following funds were also among the new AIR investors: David Costen Haley’s HBK Investments and Mike Vranos’s Ellington.

What have insiders been doing with AAR Corp. (NYSE:AIR)?

Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time frame, AAR Corp. (NYSE:AIR) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to AAR Corp. (NYSE:AIR). These stocks are Astronics Corporation (NASDAQ:ATRO), Orbital Sciences Corp (NYSE:ORB), Sturm, Ruger & Company (NYSE:RGR), Kaman Corporation (NYSE:KAMN), and Smith & Wesson Holding Corporation (NASDAQ:SWHC). This group of stocks are the members of the aerospace/defense products & services industry and their market caps resemble AIR’s market cap.